Give three examples of government control over the factors of production in a command economy.

A planned or command economy occurs when the state is the owner of the means of production, so it is up to the government to decide the quantity of production and the price. In this model, there are no private companies or competition.

1) Oil production: Most oil companies around the world are state owned. It is a strategic resource, to which the state does not normally give up controlling production and distribution.

2) Public Functionalism: it occurs when the government hires civilians to act in the public administration. In this case, the government controls the labor factor of production.

3) Control of manufacturing plants: in command economies, the government controls factories and decides the quantity that will be produced, distributed or eventually exported.

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